Tips On How To Improve Your Credit Scores

Components Of Credit Scores

How To Improve Your Credit Scores

There are many ways in boosting your credit scores just by applying a few simple techniques.  Remember that you cannot have an ongoing dispute with any credit reporting agencies if you intend on applying for a mortgage loan.  However, if you just filed bankruptcy or had a recent foreclosure and are starting a credit repair program, whether on your own or by hiring a credit repair company, there are things you should know how certain derogatory credit deletions will improve your scores .  There are other ways of spiking up your credit scores also by simply paying down your credit card balances and obtaining new credit.  One of the most effective ways of boosting your credit scores is by getting three secured credit cards with a $500 credit limit on each secured credit card.  You can get secured credit cards here at which report to all three major credit reporting agencies.  Each secured credit card can boost your credit scores by at least 20 or more points.  Some have seen their credit scores increase as much as 100 points with just three secured credit cards in a matter of just a few months.  Remember to keep your credit card balances below the 10% balance limit for maximum optimization.  Another thing you need to keep in mind is that your credit scores will be lower if you max out your credit card.

Derogatory items and impact on credit scores

By reducing a revolving credit account balance below the 30% credit limit can improve your credit scores by 10 to 30 points if you have multiple open revolving credit accounts.  If you have only 2 or less revolving credit accounts, reducing your credit account balance below the 30% credit balance limit will improve your credit scores by 15 to 40 points.  If you can get a  recent collection account removed from your credit report, your credit scores will increase by 50 to 70 points.

Impact Of Late Payments On Your Credit Scores

A recent late payment deletion will earn you an additional 50 to 70 points to your credit score.

A removal of a recent mortgage payment that has been 30 days late will boost another 70 to 90 points to your credit scores.  A deletion of a recent mortgage payment that has been 90 days late will jack your credit scores up another 70 to 90 points.

Impact Of Short Sale And Deed In Lieu On Your Credit Scores

A recent short sale or deed in lieu without any deficiency will improve your credit scores by 60 to 80 points.   A deletion of a short sale and/or foreclosure with a deficiency will earn you another 125 plus points to your credit scores.  A bankruptcy deletion will gain you a 150 to 200 points credit score increase.

Credit repair and re-establishing credit is of utmost importance

Your credit and credit scores is probably the most important thing you need to pay attention to.  It is as important as monitoring your banking accounts.  Having bad credit will cost you thousands, if not hundreds of thousands, of dollars in higher mortgage rates on your mortgage, credit card interest payments, and insurance premiums.  Many insurance companies will deny you insurance if you have very bad credit.  Others can charge you substantially more in insurance premiums if you have bad credit.  Many employers now check candidate’s credit during their hiring and promotional process.  If you need additional credit advice, visit Credit Fix Advisors at, a national credit informational super website where you can obtain sample dispute letters to dispute your derogatory credit items to the credit reporting agencies.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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